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Brazil to develop a reserve financial system based on DLT

04 September 2017 21:00, UTC

Brazilian authorities are planning to invent an innovative blockchain technology for financial settlements. The positioning report on the distributed ledger studies appeared on the website of Brazilian government.

The latest innovative blockchain technologies and solutions that became available to banks have a potential to be a foundation of the reserve banking system in case the primary goes awry and in case of some extraordinary events: “In this context, the Alternative System for Transactions Settlement (SALT) is a conceptual system for a contingent solution that would be able to immediately replace core functionalities of the main Brazilian RTGS in case of its full collapse.”

Banks and financial organizations of the country are planned to become validating nodes (the same type of nodes was mentioned by Vitalik Buterin in one of his recent lectures on the theme). The instant exchange of information in the distributed ledger and the prevention of discrepancies in accounting are other pros of blockchain that the Brazilian researchers highlight.